The most powerful people Assignment Example | Topics and Well Written Essays - 500 words

The most powerful people - Assignment Example Time Magazine in 2009 described Bernanke as a visionary who â€Å"conjured up trillions of new dollars and blasted them into the economy; engineered massive public rescues of failing private companies; ratcheted down interest rates to zero. He didnt just reshape U.S. monetary policy; he led an effort to save the world economy† (Edroso, 2009). Trichet is known as the â€Å"Euro fighter† who defended the low inflation on the euro (Stock Market Today, 2011). The Stock Market Today states that â€Å"Trichet’s every move affects the euro zone countries† (2011). On the other hand, Shirakawa has a vital role in influencing Japan’s future economic prospects. He is also known for devising an unconventional monetary policy which was later on adopted in modified forms by the US and UK (Chung, 2011). During the recession of 2008 to 2009, banks of the world lowered their interest rates. This move was done to make borrowing cheaper and encourage businesses and consumers to borrow to spur or increase economic activity. More goods will be produced by businesses and bought by consumers. If there is a demand to produce more, then it will also create jobs which will positively affect the economy and eventually rise out of the recession. One of the reforms adopted by the Fed to improve the U.S. monetary policy is the quantitative easing whereby the government injects billions of dollars of fresh cash in the economy to pump up economic growth (Sanati, 2011). However, this policy is not proven effective as pointed out by Sanati since the economy is still not performing well as shown by the negative economic indicators, including a very low job growth (2011). Bernanke though is still convinced that quantitative easing would help the economy to recover. One is of the opinion that Bernanke is right in instituting this policy because it will result in banks having access to cheap cash which they can lend out to